The Effect of Good Corporate Governance and Financial Distress on Earnings Management in Indonesian and Malaysia Companies Entered in Asean Corporate Governance Scorecard

This research was conducted to determine whether Good Corporate Governance and Financial Distress can influence Earnings Management. The sampling technique used was purposive sampling. The study was conducted on companies in Indonesia and Malaysia that were included in the ASEAN Corporate Governance Scorecard with a research period of 3 (three) years (2015-2017). The model estimation used is multiple regression analysis. The expected results of this research proposal are Good Corporate Governance and Financial Distress able to influence Earnings Management. The results showed that the coefficient of determination adjusted for 0.062 means 6.2% variable Earnings Management is influenced by Good Corporate Governance and Financial Distress variables. While the remaining 93.8% influenced by another factor. Result of F test that simultaneously variable of Good Corporate Governance and Financial Distress have significant influence to earnings management variable. The result of partial variable t-test of Good Corporate Governance has no effect both to Earnings Management and Financial Distress on Earnings Management.